Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of reclassifying weapons as ethical investments for pension funds.

Trustees and fund managers are responsible for making investment decisions in line with their fiduciary duty and member preferences.

In a time of increasing geopolitical instability, maintaining a robust and thriving defence sector is essential to our national security. The Government has therefore been clear that supporting our defence industry is entirely consistent with ethical investing. The Defence Industrial Strategy Statement of Intent, published in December 2024, recognised issues with regards to access to finance for the defence industry.

The Government has consulted with a wide range of stakeholders, including defence suppliers and financial institutions, to assess the ways in which we can reduce these barriers and create a strong and resilient defence sector.